Climate and environmental considerations have a substantial impact on dam design and choosing. Dams in dry climates need to be strong, able to tolerate high temperatures and varying water flows that could reduce the materials' efficiency.

In colder climates, freeze-thaw cycles and ice pressure must be considered. In locations where flooding or heavy precipitation is likely, spillways and reinforced structures play a critical role in managing excess water and preventing flooding. To ensure that the dam has no negative effects on the nearby species and ecosystems, environmental impact assessments are also necessary. Engineers can select appropriate dam types and materials to ensure durability, security, and low environmental impact by keeping these factors in mind.